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PepsiCo looks to expand in Latin America

A senior executive for PepsiCo Inc announced the company is monitoring growth opportunities in Latin America in an effort to take advantage of recovering economies in the region.
 PepsiCo looks to expand in Latin America
 
 

A senior executive for PepsiCo Inc announced the company is monitoring growth opportunities in Latin America in an effort to take advantage of recovering economies in the region.

Last month the company reduced its global earnings growth targets for 2011 and beyond, citing soaring commodity prices and uncertainty about when the economic restoration on paper will be felt by consumers.

Jorge Tarasuk, vice president for operations at PepsiCo South America Foods, said the company was trying to increase productivity and cut costs, and was interested in chances to solidify relations with suppliers in the region, Reuters reported.

"Latin America continues to be a good bet," he said, adding PepsiCo was focused on opportunities in Argentina, Colombia and Peru, countries that have seen strong economic upturns.

He said the company was not ruling out further growth in the large, important markets of Brazil and Mexico.

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Details about the company's strategy or possible targets have not been revealed, but Tarasuk said the company is always ready for possible acquisitions.

Alongside economic recovery in much of the region, he said PepsiCo also saw increasing political stability in Latin America supporting the company's performance going forward.

Shares of PepsiCo, whose products range from Pepsi-Cola and Tropicana juice to Frito-Lay snacks and Quaker oatmeal, are down about 3 percent this year.

Consumers of daily soda pops should consider this a warning: both PepsiCo and rival Coca-Cola Co have said they will raise prices this year on some drinks as they seek to offset higher costs for everything from corn syrup to packaging.




 



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